Shares of Tata Steel are in focus today as the steelmaker will announce its earnings for the quarter and fiscal ended March 2023.
The metal stock rose 0.28% to close at Rs 107.90 on Friday against the previous close of Rs 107.60 on BSE. Total 12.93 lakh shares of the firm changed hands amounting to a turnover of Rs 13.95 crore. Market cap of the Tata Group firm stood at Rs 1.31 lakh crore. The stock is down 14.44% in a year and lost 4.22% in 2023.
In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 55.6, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.4, indicating very high volatility in a year. Tata Steel shares are trading higher than the 5 day, 20 day, 50 day and 200 day moving averages but lower than 100 day moving averages.
The Tata Group firm is expected to post a 92.4% fall in profit to Rs 738.9 crore in Q4 against Rs 9756.2 crore in the corresponding quarter of the previous fiscal, said an earnings preview report by ICICI Securities.
Revenue is likely to fall 13.2% to Rs 60,024 crore in the last quarter against Rs 69,323.5 crore in Q4 of FY22. On a quarter on quarter basis, the firm is expected to post 5.2% growth in revenue from Rs 57,083.6 crore .
“Expect Tata Steel to incur loss of $98/te due to negative price-cost effect. Domestic EBITDA/te is likely to improve by Rs 1,500 mainly due to higher realisation. Expect loss at Tata Steel Long Products to sustain, though at a lower level,” said ICICI Securities in its earnings preview.
Axis Securities expects Tata Steel's consolidated revenue to rise 3.4% QoQ led by higher HRC prices and sales volume, partially offset by adverse product mix in Europe.
Revenue is likely to fall 15% YoY, led by lower HRC prices and sales volume. EBITDA and EBITDA margins are expected to recover by 37% and 230 bps QoQ respectively, led by lower coking coal consumption cost and higher topline.
In the third quarter of the last fiscal, Tata Steel reported a net loss of Rs 2,502 crore as against net profit of Rs 9,598 crore in the year-ago period on account of higher expenses. The company's revenue from operations fell 6% to Rs 57,084 crore in Q3FY23 as compared to Rs 60,783 crore in Q3FY22.
Also read: Tata Steel Q4 results preview: 90% plunge in profit likely for Tata group firm as Europe drags